It is applicable as follows:
- The first $300,000 of a company’s chargeable income is partially exempt from tax:
- 75% of the first $10,000 of chargeable income; and
- 50% of the next $290,000 of the chargeable income.
- The balance of chargeable income is subject to tax at the rate of 17%.
Assuming that the chargeable income of the company ‘My Co’ registered in Singapore was $560,000, the corporate income tax would be:
For newly incorporated companies with tax residents in Singapore, and which have no more than 20 shareholders all of whom are individuals or at least 1 of whom is an individual who holds at least 10% of the total number of issued ordinary shares, there are further exemptions for the first 3 consecutive YAs:
- 100% of the first $100,000 of chargeable income; and
- 50% of the next $200,000 of chargeable income.
This exemption is not available to property development companies or investment holding companies. These companies are given partial tax exemption.
Assuming ‘My Co’ was 10% owned by an individual and 90% held by a holding company based in Italy, the corporate income tax would instead be: